CELESTICA INC (CLS) Stock Fundamental Analysis
NYSE:CLS - New York Stock Exchange, Inc. - CA15101Q2071 - Common Stock - Currency: USD
CLS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. While CLS has a great profitability rating, there are some minor concerns on its financial health. CLS is valued quite expensively, but it does show have an excellent growth rating. These ratings would make CLS suitable for growth investing!
1. Profitability
1.1 Basic Checks
CLS had positive earnings in the past year.
In the past year CLS had a positive cash flow from operations.
CLS had positive earnings in each of the past 5 years.
CLS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CLS has a Return On Assets of 7.24%. This is amongst the best in the industry. CLS outperforms 88.00% of its industry peers.
CLS has a better Return On Equity (27.13%) than 92.80% of its industry peers.
The Return On Invested Capital of CLS (17.26%) is better than 94.40% of its industry peers.
CLS had an Average Return On Invested Capital over the past 3 years of 11.43%. This is above the industry average of 9.30%.
The last Return On Invested Capital (17.26%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 27.13% | ||
| ROIC | 17.26% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
1.3 Margins
The Profit Margin of CLS (4.19%) is better than 71.20% of its industry peers.
CLS's Profit Margin has improved in the last couple of years.
CLS's Operating Margin of 5.94% is fine compared to the rest of the industry. CLS outperforms 70.40% of its industry peers.
CLS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 10.76%, CLS is doing worse than 77.60% of the companies in the same industry.
CLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.94% | ||
| PM (TTM) | 4.19% | ||
| GM | 10.76% |
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
CLS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CLS has been reduced compared to 1 year ago.
The number of shares outstanding for CLS has been reduced compared to 5 years ago.
CLS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.84 indicates that CLS is not in any danger for bankruptcy at the moment.
CLS has a Altman-Z score of 4.84. This is in the better half of the industry: CLS outperforms 72.00% of its industry peers.
The Debt to FCF ratio of CLS is 3.08, which is a good value as it means it would take CLS, 3.08 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CLS (3.08) is better than 69.60% of its industry peers.
CLS has a Debt/Equity ratio of 0.59. This is a neutral value indicating CLS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, CLS is doing worse than 78.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.84 |
ROIC/WACC2.11
WACC8.18%
2.3 Liquidity
CLS has a Current Ratio of 1.43. This is a normal value and indicates that CLS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.43, CLS is not doing good in the industry: 77.60% of the companies in the same industry are doing better.
CLS has a Quick Ratio of 1.43. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.85, CLS is doing worse than 85.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.06%, which is quite impressive.
Measured over the past years, CLS shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.11% on average per year.
Looking at the last year, CLS shows a very strong growth in Revenue. The Revenue has grown by 21.05%.
Measured over the past years, CLS shows a quite strong growth in Revenue. The Revenue has been growing by 10.38% on average per year.
EPS 1Y (TTM)51.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%39.53%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%19.91%
3.2 Future
CLS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.42% yearly.
Based on estimates for the next years, CLS will show a quite strong growth in Revenue. The Revenue will grow by 13.65% on average per year.
EPS Next Y23.72%
EPS Next 2Y21.86%
EPS Next 3Y22.07%
EPS Next 5Y24.42%
Revenue Next Year13.28%
Revenue Next 2Y15.04%
Revenue Next 3Y13.65%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 37.38, CLS can be considered very expensive at the moment.
CLS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CLS to the average of the S&P500 Index (27.45), we can say CLS is valued slightly more expensively.
With a Price/Forward Earnings ratio of 27.36, CLS can be considered very expensive at the moment.
CLS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CLS to the average of the S&P500 Index (21.90), we can say CLS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.38 | ||
| Fwd PE | 27.36 |
4.2 Price Multiples
CLS's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CLS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.16 | ||
| EV/EBITDA | 25.58 |
4.3 Compensation for Growth
CLS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CLS may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 22.07% in the coming years.
PEG (NY)1.58
PEG (5Y)0.78
EPS Next 2Y21.86%
EPS Next 3Y22.07%
5. Dividend
5.1 Amount
CLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
159.26
+4.36 (+2.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners76.87%
Inst Owner Change-0.74%
Ins Owners0.53%
Ins Owner Change25.26%
Market Cap18.40B
Analysts82.22
Price Target100.62 (-36.82%)
Short Float %3.53%
Short Ratio1.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.3%
Min EPS beat(2)1.95%
Max EPS beat(2)6.65%
EPS beat(4)4
Avg EPS beat(4)7.48%
Min EPS beat(4)1.95%
Max EPS beat(4)10.78%
EPS beat(8)8
Avg EPS beat(8)10.16%
EPS beat(12)12
Avg EPS beat(12)8.62%
EPS beat(16)16
Avg EPS beat(16)9.76%
Revenue beat(2)1
Avg Revenue beat(2)0.87%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)2.5%
Revenue beat(4)3
Avg Revenue beat(4)2.38%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)5.37%
Revenue beat(8)7
Avg Revenue beat(8)2.81%
Revenue beat(12)11
Avg Revenue beat(12)3.1%
Revenue beat(16)13
Avg Revenue beat(16)2.59%
PT rev (1m)6.02%
PT rev (3m)-4.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.27%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.38 | ||
| Fwd PE | 27.36 | ||
| P/S | 1.82 | ||
| P/FCF | 60.16 | ||
| P/OCF | 38.9 | ||
| P/B | 11.82 | ||
| P/tB | 20.03 | ||
| EV/EBITDA | 25.58 |
EPS(TTM)4.26
EY2.67%
EPS(NY)5.82
Fwd EY3.66%
FCF(TTM)2.65
FCFY1.66%
OCF(TTM)4.09
OCFY2.57%
SpS87.28
BVpS13.47
TBVpS7.95
PEG (NY)1.58
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 27.13% | ||
| ROCE | 21.53% | ||
| ROIC | 17.26% | ||
| ROICexc | 19.37% | ||
| ROICexgc | 26.09% | ||
| OM | 5.94% | ||
| PM (TTM) | 4.19% | ||
| GM | 10.76% | ||
| FCFM | 3.03% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
ROICexc(3y)13.32%
ROICexc(5y)10.55%
ROICexgc(3y)18.44%
ROICexgc(5y)14.81%
ROCE(3y)14.26%
ROCE(5y)11.14%
ROICexcg growth 3Y31.4%
ROICexcg growth 5Y28.76%
ROICexc growth 3Y37.65%
ROICexc growth 5Y29.81%
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score8
Asset Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.08 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 114.76% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 11.11 | ||
| Cash Conversion | 63.55% | ||
| Profit Quality | 72.42% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 4.84 |
F-Score8
WACC8.18%
ROIC/WACC2.11
Cap/Depr(3y)94.48%
Cap/Depr(5y)73.42%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)94.3%
Profit Quality(5y)151.44%
High Growth Momentum
Growth
EPS 1Y (TTM)51.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%39.53%
EPS Next Y23.72%
EPS Next 2Y21.86%
EPS Next 3Y22.07%
EPS Next 5Y24.42%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%19.91%
Revenue Next Year13.28%
Revenue Next 2Y15.04%
Revenue Next 3Y13.65%
Revenue Next 5YN/A
EBIT growth 1Y32.3%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year45.93%
EBIT Next 3Y22.4%
EBIT Next 5YN/A
FCF growth 1Y46.22%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y41.27%
OCF growth 3Y27.84%
OCF growth 5Y6.55%